Hrvatski Telekom (Reuters: HT.ZA; Bloomberg: HTRA CZ), Croatia's leading telecommunications provider, announces its unaudited consolidated results for the nine months to 30 September 2015.
During the first nine months of 2015, Hrvatski Telekom recorded an increase of all key financial indicators. During the nine month period, HT revenue grew by 1% year on year to total HRK 5.19 billion. In addition, earnings before interest, taxation, depreciation, and amortisation (EBITDA before exceptional items) reached HRK 2.1 billion, an increase of 1.5% in comparison to the previous year. Furthermore, HT maintained a high EBITDA margin of 40.1%, slightly increased compared to 39.9 % in the same period of the previous year. Net profit in the first nine months of 2015 amounted to HRK 730 million, a 2% increase over the previous year.
Increased investment activities focus on development of high-speed Internet access infrastructure
Along with growth in all key financial indicators, HT’s performance in the first nine months of 2015 was characterised by increased capital expenditure. During the nine month period, investments increased by 18% in comparison to the same period of the previous year. For the full 12 months of 2015, HT expects its investments to total more than HRK 1.3 billion, marking a 25% increase over 2014.
The three key areas on which Hrvatski Telekom focused its investment activities in the first nine months of 2015 were as follows: development of the mobile and fixed line infrastructure; increased broadband access capacity; and completion of the IP transformation process.
During the nine month period, 4G network coverage reached 59% of the population. Investment in the expansion of the 4G network will continue and, by the end of the year, the plan is to achieve 4G mobile network coverage for more than 60% of the population, at speeds of up to 150 Mbit/s.
Investment in the fixed network also continued, with optical access provided to 135,881 households. By the end of 2015, 50 % of households will have broadband access on the fixed network at bitrates of a minimum of 30 Mbp/s.
The Horizont strategic program, launched to increase efficiency and improve business operations, is extending across all parts of HT, continuing the transformation of the company that commenced in 2014. Results from the first wave projects are already apparent in terms of cost efficiencies, improved customer experience, the introduction of relevant changes in fixed and mobile communications services, and improved utilisation of technology.
Completion of IP transformation: HT is poised to become the third telecommunications operator in the EU to migrate all its customers and services to an all-IP environment
Within the next 30 days, HT plans to fully complete the extensive process of IP transformation – the modernisation of the fixed telecommunications network, within the scope of which the fixed network telephone lines of all customers will be migrated to IP (Internet Protocol) technology. Currently, 1,125,969 customers, equivalent to 98%, have been migrated. Over the last five years, HT has invested more than HRK 400 million in this IP transformation project.
HT will be the third telecommunications operator in the European Union to migrate all its customers and services to an all-IP environment.
Commenting on the results for the first nine months of 2015, Davor Tomašković, President of the Management Board of Hrvatski Telekom, said:
“Looking back on a highly successful third quarter, marked by revenue growth and increased profitability, we are exceptionally proud that after six years we have managed to achieve a turnaround in operational results – with all key financial indicators stabilised, and the upward trend seen in the first half of the year reaffirmed. We continue to focus on increasing our investment in infrastructure development, which will enable us to offer innovative products and the best quality and fastest services on the Croatian market. The successful completion of our IP transformation initiative, which positions Hrvatski Telekom alongside Europe’s top telecommunications operators, is a further endorsement of our position of the absolute technology leader in the Croatian market.“